JKL LLP has an income of ₹ 70,00,000 under the head 'profits and gains of business or profession'. One of its businesses is eligible for deduction @ 100% of profits under section 80-IB. The profit from such business incl

Computation of Tax payable by JKL LLP for A.Y. 2025-26 Particulars Amount (Rs.) Total Income 70,00,000 Less: Deduction under section 80 IB (55,00,000) Taxable Income 15,00,000 Tax @ 30% 4,50,000 Health & Education Cess @4% 18,000 Total Tax 4,68,000 Computation of Alternate Minimum Tax 'AMT' Particulars Amount (Rs.) Total Income 70,00,000 AMT on adjusted Total Income @ 18.5% 12,95,000 Health & Education Cess @4% 51,800 Total Tax 13,46,800 Since, the regular income tax payable is less than AMT, the adjusted total income would be deemed to be the income of JKL LLP and it would be liable to pay tax @ 18.5% plus cess i.e. Tax payable will be higher of AMT or Normal tax i.e. ₹ 13,46,800. Further, the LLP would be eligible for tax credit in 15 subsequent years to the extent of difference between the AMT and Normal Tax i.e. ₹ 8,78,800 (13,46,800-4,68,000), in the year in which the tax payable under regular provisions exceeds the AMT.